​An Advantage of Capitalism Is That

question 45

Multiple Choice

​An advantage of capitalism is that

• A)​It allows the market to self-regulate and clear itself
• B)It allows a person to follow his or her own self interest
• C)It allows voluntary transactions,which create wealth
• D)​All of the above

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Definitions:

Marking To Market

Marking to market is an accounting practice where assets and liabilities are adjusted to their current market values rather than their book values.

Margin Call

A demand by a broker that an investor deposit further cash or securities to cover possible losses.

Variation Margin Check

A financial safeguard measure in futures trading that involves calculating and settling the gains or losses on open contracts to ensure enough capital exists to cover potential losses.

Futures Contracts

Contracts that obligate the purchase or sale of a specific commodity or financial asset at an agreed-upon price at a future date.